FILE - In this Saturday, June 26, 2010 file picture, an oil-drenched bird struggles to climb onto a boom from the waters of Barataria Bay, La., which are filled with oil from the BP Deepwater Horizon oil spill. An April 20, 2010 explosion at the offshore platform killed 11 men, and the subsequent leak released an estimated 172 million gallons of petroleum into the Gulf of Mexico. (AP Photo/Gerald Herbert)
News Summary: SEC settles with credit-rating firm
Published: 09:46:39 PM, Tue 22 January 2013 UTC
SEC SETTLES: The Securities and Exchange Commission barred Egan-Jones Ratings Co. from rating governments and issuers of asset-backed bonds as a recognized rating agency for 18 months. The order came as part of a settlement with Egan Jones.
THE CHARGES: The SEC alleged that the company made false statements when applying to become a "nationally recognized" rating agency in 2008. It also said Egan-Jones repeatedly violated conflict-of-interest rules.
AND YET: The firm will likely keep offering ratings on governments and asset-backed issuers, said Bill Hassiepen, co-head of Egan-Jones' ratings desk. They just won't carry the SEC's stamp of approval.
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